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V1641-22 ·8 July 2022 ·consulta-vinculante Medium impact
Tax

Lease income paid in advance does not qualify for the 30% reduction if not attributed to a single period

A query was raised regarding the taxation of a commercial premises lease where the total amount for the first four years is collected in a single upfront payment. The DGT has determined that these earnings constitute income from real estate capital and are ineligible for the reduction for irregular income.

In 5 key points

How it affects those involved

Landlords collecting multi-year rent in advance must ensure the income is attributed to a single tax period to benefit from the 30% reduction for irregular income; otherwise, the full amount is taxed as general income in the year of receipt.

Lifecycle

2022-07-08PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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